Getting rich

alpha_monkey · Mar 23, 2004

Hi all,

This is a question to everyone on (GMT based) time, and specifically, what part of the day do people find is the best for turning an intraday profit?

The motivation for this question is inspired by an idea in Market Wizards, possibly Ed Seykota's. It was suggested that looking at a quote screen all day is tantamount to sitting in front of a slot machine. Is it therefore a better idea to limit one's self to trading times of the day only where opportunities for profit are greatest?

To get the ball rolling, I find that the opening 90 minutes on the DAX is the best time of day (and market) in European hours for scalps. Favoured strategies are playing the break away from the "opening range" (highest and lowest prices established in the first 20 - 30 minutes or so...) with a trailing stop.

Secondly, would anyone else agree that the markets become more directional an hour or so after the US open? Using the NASDAQ and S&P charts as the tick indicator is great for a lead on DAX and EuroStoxx in the very short term.

So answering my own question, I favour 8.00am till 9.45am and 2.15pm till 4.45pm. Of course I don't follow this rule.

Thinking about it though. On the flipside, if I do follow this rule, I'll miss another favourite - the double bottom/top, mid-morning reversal pattern.

What times and strategies do you find most effective?

Cheers,
The long lost Alpha Monkey

Runningbear · Mar 23, 2004

Often if the first 90 minutes trades over a good range, you will also get higher than average volatility through the rest of the day, so it's worth watching the volume to determine how long you stay in. If the market continue to trend smoothly after the open, you can often keep trading for longer.

If the market shows no volatility early, sometimes it's better set alerts for key support and resistance points and just walk away. If the market trades through S/R the volatility can often occur later in the day.

Runningbear

BA_Trader · Mar 23, 2004

Why not just monitor on a slower time frame when things seem to be going
nowhere... typically the volume will let you know when these times are at hand.

JT

Champion · Mar 23, 2004

First hour and half on the DOW. Sweet as nut most of the time but you also need to be a Man with a Plan.

IMO.

alpha_monkey · Mar 31, 2004

Freshening up the thread.....

What time of day do people find is most profitable for scalping?

Kicking · Mar 31, 2004

I think what Seykota meant to say was that daytrading was not the best way to get rich.

alpha_monkey · Mar 31, 2004

Quote from Kicking:

I think what Seykota meant to say was that daytrading was not the best way to get rich.

I think his comments were a warning to those trading without a game plan - slot machine mentality as reference to trading "opportunities" on tick fluctuations that aren't there. As a longer term systematic trader, Seykota would have very limited interest in these sort of short term movements.

However, there are clearly opportunities there, and you can certainly get rich if you do size. Lifestyle is another question.

I mentioned the comment as an introduction, and with tongue slightly in cheek. I agree with his sentiment but am turning it on its head to ask the board what they feel about intraday seasonalities. Any observations of note?

nononsense · Mar 31, 2004

Quote from Kicking:

I think what Seykota meant to say was that daytrading was not the best way to get rich.

He may have never tried it himself.

alpha_monkey · Apr 5, 2004

Monday 5th of April.
Looking at EuroStoxx, CAC & FTSE.
Boring, boring markets....

It seems to me that trading Mondays before the US opens up is a great time to do yourself in. Would touch it with yours - rather slam my cock in a draw, as the saying goes.